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Online shopping: still going strong

03/07/2008

As the credit crunch takes hold, people are beginning to wonder how far their money will stretch in the months to come. The High Street is just beginning to feel the strain: John Lewis recently reported a significant downturn in sales, with DSG (owners of Currys and PC World) announcing big yearly losses. So it may come as a surprise that online shopping is continuing to grow at an impressive rate.

According to a survey by Verdict Research, shopping online increased by 35% last year – going up to £14.7bn in total. If trends continue, they said, online retail sales will account for 13.8% of total consumer spending by 2012, reaching £44.9bn.

Growth in the face of a downturn
A spokesperson for Think Money said: “The news is surprising given the current market conditions. On the High Street we are seeing many people tightening their purse strings to make room for other costs of living, but it seems the same doesn’t apply to online shopping.

“It could be argued that it’s because shopping online tends to be a lot cheaper – not to mention that things like electronics are always going down in price – but it still stands that on average, people are spending a lot more.”

But the spokesperson was keen to warn of the risks of shopping online. “The prospect of handing over hard-earned cash can be enough to stop some people overspending on the High Street,” she said. “But it’s very easy for people to get carried away online, because there is no physical transaction being made.

“We deal with lots of people struggling with debt, and sometimes it can only take one or two impulse purchases before people find themselves in trouble.”

She continued: “If that happens, the most important thing is that it isn’t ignored. An expert debt adviser can look at your situation and find the best debt solution for you.

“For smaller debts, a debt management plan or debt consolidation loan might be the best way forward, or for bigger debts an IVA (Individual Voluntary Arrangement) could help.”

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